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Telangana's Minister for Irrigation and Civil Supplies, N Uttam Kumar Reddy, emphasized Hyderabad’s growing status as a global investment hub, primarily due to the state’s ongoing infrastructure development. Speaking at Statecon 2024, organized by CREDAI, Reddy reassured the real estate sector of the government's continuous support, particularly regarding key concerns such as building restrictions, zoning regulations, and the expansion of the growth corridor. He reinforced the government's commitment to facilitating real estate and business activities within the state.
Key Points:
- Hyderabad is attracting global investment, with infrastructure being the key driver.
- The real estate sector is supported by the government’s pro-growth policies.
- Hyderabad has accounted for 21% of India’s total office leasing by GCCs.
- The city’s office space leasing totaled 4.4 million square feet in the first half of 2024.
- Over $40 billion has been invested in Telangana since 2014.
- Technology, consulting, and life sciences sectors are driving office space demand.
- Hyderabad’s office stock tripled since the formation of Telangana.
- Hyderabad will add 34-37 million square feet of business parks over the next three years.
The report “Telangana Going Global,” released at the event, credited the state’s infrastructure, investor-friendly policies, and streamlined approvals for attracting investments. The city has seen a notable rise in office developments, especially in the IT corridor, with new office space totaling 127 million square feet as of mid-2024. This surge in demand for commercial real estate is indicative of Hyderabad’s increasing prominence as a global business center. The report projected that Hyderabad will continue to grow, with up to 37 million square feet of additional investment-grade business parks to be developed over the next few years.
Hyderabad’s real estate market is thriving, with a notable rise in foreign direct investment (FDI), which reached $3 billion in the financial year 2023-24, doubling the previous year’s figures. The city now accounts for 14% of India’s total office stock, and its rapid growth is supported by the major developers contributing to over 39% of the city’s office space. A significant portion of this growth is driven by industries such as technology, research, consulting, and analytics, while sectors like BFSI, life sciences, and engineering are also contributing to increased office space absorption.
The report further highlighted the growth potential of secondary urban centers in Telangana. Cities like Warangal, Nizamabad, Khammam, and Karimnagar are emerging as primary hubs, while regions such as Ramagundam, Mahabubnagar, and Adilabad are being developed as secondary centers. These areas represent the next phase of real estate development in the state, presenting new opportunities for investors and developers looking to expand beyond Hyderabad.
In conclusion, Telangana’s strategic focus on infrastructure, skill development, and business-friendly policies has positioned Hyderabad as a key player in India’s global investment landscape. The state’s ongoing efforts in developing emerging urban centers will further bolster its growth trajectory. Hyderabad’s transformation into a global business hub, coupled with the burgeoning real estate sector, promises long-term benefits for investors, developers, and businesses alike.
